Release: ������������ #4211-98
For Release:���� December 3, 1998

CFTC Adopts Final Rules Establishing Procedures for
Requesting Exemptive, No-Action and Interpretative Letters

Washington, D.C. -- The Commodity Futures Trading Commission today announced that it has adopted new Rule 140.99, which establishes procedures for submitting requests to Commission staff for exemptive, no-action and interpretative letters ("Letters"). Commission staff is frequently asked by persons affected by the Commission's regulatory framework to provide interpretive guidance concerning the application of statutory and regulatory requirements to particular fact situations, or to grant exemptive or no-action relief from certain regulatory requirements where appropriate. The procedures set forth in Rule 140.99 are meant to provide guidance to the public in submitting such requests to Commission staff and to ensure all persons will be aware of the Commission's requirements for requests for Letters.

Among other things, Rule 140.99:

• Defines "exemptive", "no-action" and "interpretative" letters;

• Requires a request for a Letter to be signed and in writing, and filed with the Director of the Division of Trading and Markets, who will route the request to the appropriate Division or Office of the Commission, as appropriate;

• Requires a complete statement of the material facts; and

• Requires a statement of the type of response being sought and the legal and public policy grounds in support of the request, including representative citations to relevant authorities.

Although Rule 140.99 as adopted is similar to Rule 140.99 as proposed,⁽¹⁾ �the Commission has made a number of changes to the rule as adopted in response to comments from industry participants and their representatives. Among other things, these changes:

• Clarify who is bound by and who can rely on Letters;

• Provide for the making of alternate requests in one Letter;

• Restrict the certification requirement solely to material statements of fact in a request; and

• Provide that a request can be withdrawn, as long as Commission staff is advised of the withdrawal and informed whether the requester will proceed with the contemplated transaction or activity.
  

Notwithstanding the adoption of Rule 140.99, Commission staff will continue to be receptive to informal inquiries and to engage in discussions with interested persons regarding the Commodity Exchange Act and the Commission's rules. Where requesters seek a formal response to an inquiry of Commission staff, they should follow the procedures set forth in Rule 140.99.

The new rule will be published shortly in the Federal Register. Copies of the rule may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21^st Street, N.W., Washington, D.C., 20581, (202) 418-5100 or by accessing the Commission's website at www.cftc.gov.

1. ��� Requests for Exemptive, No-Action and Interpretative Letters, 63 Fed. Reg. 3285 (January 22, 1998).